E-Duction Studies Reveal Key Factors in Evaluating Voluntary Benefits

02/09/01

PHILADELPHIA, PA (February 9, 2001) – E-Duction, Inc., the provider of a new voluntary benefit that offers employees interest-free purchasing through payroll deductions, today announced results of two independent studies outlining challenges that companies face in selecting benefits products. E-Duction commissioned Watson Wyatt Worldwide and Arthur Andersen, LLP, to conduct the research, partly in response to a published study revealing that the number of firms offering voluntary benefits has doubled since 1999 (Worksite Marketing of Voluntary Products, LIMRA International).

The key findings are that benefits buyers are most receptive to new products that provide clear, compelling advantages to both company and its employees alike, along with several factors that employees find beneficial. The study concluded that when selecting new benefits, benefits buyers try to accommodate the following concerns:

For employers: cost effective, easy implementation
("plug and play") and meets employees needs

For employees: saves money, adds convenience and
assists in budgeting/financial tool

"This latest research validates what's important to both employers and employees in their benefits packages," said Dan Doherty, Executive Vice President of Sales and Marketing. "The key concerns of employees and employers are satisfied by the E-Duction card. It allows employees to save money by making interest-free purchases through a series of payroll deductions, providing a convenient budgeting tool. For employers, E-Duction offers a valuable benefit with hassle-free implementation at no direct cost," Doherty said.

Regarding cost-effectiveness, benefits buyers seek to positively answer the question – does the benefit's worth to employees justify time and monetary expenditures? An additional concern is the amount of administration required for the benefit. As one employer who participated in a Watson Wyatt focus group commented, "In order for me to be sold on [a benefit], the product would have to have a hassle-factor so low it would be worth implementing."

Employers also judge benefits against certain "value criteria" once cost-effectiveness has been established. The research showed that benefits that offer a means of financial planning as well as a response to life balance/convenience issues rate high on a scale of importance to employees. Benefits providing the opportunity to save money and manage budgetary concerns proved a significant enhancement to a company's benefits package in employees' minds. This is a key factor in determining the over-all value of any new benefit. Said one respondent, "the hurdle for voluntary benefits is their capacity to make the employer look good to the employee."

Watson Wyatt Worldwide conducted independent research from November 2000 through January 2001 in Boston and Philadelphia. All participants were benefits decision makers from Fortune 1000 companies.

Arthur Andersen, LLP based its findings upon various research conducted with employers and employees at merchants and payroll deduction companies in April 2000.

About E-Duction, Inc.
E-Duction is a one-of-a-kind financial and budgeting employee benefit that allows employees to receive up to six months of no-interest purchasing through payroll deduction. The patent-pending payroll deduction solution was created in 1997 to allow hospital employees to purchase uniforms and equipment through a series of deductions from future paychecks. E-Duction, Inc. was founded in 1999, in order to bring the unique employee benefit of payroll deduction to the broad market of employers, employees, and merchants. More information on E-Duction, Inc. is available at www.E-Duction.com.

Tom McCormick
Fax: 215.542.7090
E-mail: tmccormick@E-Duction.com

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